publication . Preprint . Article . 2006

Financial Literacy and Financial Education: Review and Policy Implications

Annamaria Lusardi;
Open Access
  • Published: 01 May 2006
Abstract
In recent years, as workers have gained an unprecedented degree of control over their pensions and savings, the importance of financial literacy and financial education has increased considerably. Large changes in the structure of financial markets, labor markets, and demographics in developed countries have led to this change. Consumers have a bewildering array of complex financial products – from reverse mortgages to annuities – to choose from, making saving decisions increasingly complex. Knowledge about the working of compound interest rates, the effects of inflation, and the working of financial markets is essential to make saving decisions. Several initiat...
Subjects
free text keywords: Financial knowledge; retirement seminars, savings., Indirect finance, Finance, business.industry, business, Financial regulation, Financial analysis, Financial plan, Financial management, Financial literacy, Financial intermediary, Accounting management
Related Organizations

Agnew, Julie and Lisa Szykman (2005), “Asset Allocation and Information Overload: The Influence of Information Display, Asset Choice and Investor Experience,” Journal of Behavioral Finance, 6, pp. 57-70.

Bayer, Patrick, Douglas Bernheim, and J. Karl Scholz (1996), “The Effects of Financial Education in the Workplace: Evidence from a Survey of Employers,” NBER Working Paper n. [OpenAIRE]

Bernheim, Douglas (1995), “Do Households Appreciate Their Financial Vulnerabilities? An Analysis of Actions, Perceptions, and Public Policy,” Tax Policy and Economic Growth, Washington, DC: American Council for Capital Formation, pp. 1-30.

Bernheim, Douglas (1998), “Financial Illiteracy, Education and Retirement Saving,” in Olivia Mitchell and Sylvester Schieber (eds.), Living with Defined Contribution Pensions, Philadelphia: University of Pennsylvania Press, pp. 38-68.

Bernheim, Douglas and Daniel Garrett (2003), “The Effects of Financial Education in the Workplace: Evidence from a Survey of Households,” Journal of Public Economics, 87, pp.

Browning, Martin and Annamaria Lusardi (1996), "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, 34, pp. 1797-1855 Calvert, Laurent, John Campbell and Paolo Sodini (2005), “Down or Out: Assessing the Welfare Costs of Household Investment Mistakes.” Mimeo, Harvard University.

Christelis, Dimitris, Tullio Jappelli, and Mario Padula (2005), “Health Risk, Financial Information and Social Interaction: the Portfolio Choice of European Elderly Households”.

Working paper. University of Salerno Choi, James, David Laibson, Brigitte Madrian and Andrew Metrick (2004), “Saving for Retirement on the Path of Least Resistance,” Working Paper, Harvard University.

Clark, Robert and Sylvester Schieber (1998), “Factors Affecting Participation Rates and Contribution Levels in 401(k) Plans,” in Olivia Mitchell and Sylvester Schieber (eds.), Living with Defined Contribution Pensions, Philadelphia: University of Pennsylvania Press, pp.69-97.

Clark, Robert, Madeleine D'Ambrosio (2002), “Saving for Retirement: The Role of Financial Education,” TIAA-CREF Institute Working Paper n. 4-070102-A.

Clark, Robert, Madeleine D'Ambrosio, Ann McDermed, Kshama Sawant (2003), “Financial Education and Retirement Saving,” TIAA-CREF Institute Working Paper 11-020103.

McCarthy, David and John Turner (1996), “Financial Sophistication, Saving and Risk Bearing,” mimeo, U.S. Department of Labor Miles, David (2004), “The UK Mortgage Market: Taking a Longer-Term View”. UK Treasury.

Abstract
In recent years, as workers have gained an unprecedented degree of control over their pensions and savings, the importance of financial literacy and financial education has increased considerably. Large changes in the structure of financial markets, labor markets, and demographics in developed countries have led to this change. Consumers have a bewildering array of complex financial products – from reverse mortgages to annuities – to choose from, making saving decisions increasingly complex. Knowledge about the working of compound interest rates, the effects of inflation, and the working of financial markets is essential to make saving decisions. Several initiat...
Subjects
free text keywords: Financial knowledge; retirement seminars, savings., Indirect finance, Finance, business.industry, business, Financial regulation, Financial analysis, Financial plan, Financial management, Financial literacy, Financial intermediary, Accounting management
Related Organizations

Agnew, Julie and Lisa Szykman (2005), “Asset Allocation and Information Overload: The Influence of Information Display, Asset Choice and Investor Experience,” Journal of Behavioral Finance, 6, pp. 57-70.

Bayer, Patrick, Douglas Bernheim, and J. Karl Scholz (1996), “The Effects of Financial Education in the Workplace: Evidence from a Survey of Employers,” NBER Working Paper n. [OpenAIRE]

Bernheim, Douglas (1995), “Do Households Appreciate Their Financial Vulnerabilities? An Analysis of Actions, Perceptions, and Public Policy,” Tax Policy and Economic Growth, Washington, DC: American Council for Capital Formation, pp. 1-30.

Bernheim, Douglas (1998), “Financial Illiteracy, Education and Retirement Saving,” in Olivia Mitchell and Sylvester Schieber (eds.), Living with Defined Contribution Pensions, Philadelphia: University of Pennsylvania Press, pp. 38-68.

Bernheim, Douglas and Daniel Garrett (2003), “The Effects of Financial Education in the Workplace: Evidence from a Survey of Households,” Journal of Public Economics, 87, pp.

Browning, Martin and Annamaria Lusardi (1996), "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, 34, pp. 1797-1855 Calvert, Laurent, John Campbell and Paolo Sodini (2005), “Down or Out: Assessing the Welfare Costs of Household Investment Mistakes.” Mimeo, Harvard University.

Christelis, Dimitris, Tullio Jappelli, and Mario Padula (2005), “Health Risk, Financial Information and Social Interaction: the Portfolio Choice of European Elderly Households”.

Working paper. University of Salerno Choi, James, David Laibson, Brigitte Madrian and Andrew Metrick (2004), “Saving for Retirement on the Path of Least Resistance,” Working Paper, Harvard University.

Clark, Robert and Sylvester Schieber (1998), “Factors Affecting Participation Rates and Contribution Levels in 401(k) Plans,” in Olivia Mitchell and Sylvester Schieber (eds.), Living with Defined Contribution Pensions, Philadelphia: University of Pennsylvania Press, pp.69-97.

Clark, Robert, Madeleine D'Ambrosio (2002), “Saving for Retirement: The Role of Financial Education,” TIAA-CREF Institute Working Paper n. 4-070102-A.

Clark, Robert, Madeleine D'Ambrosio, Ann McDermed, Kshama Sawant (2003), “Financial Education and Retirement Saving,” TIAA-CREF Institute Working Paper 11-020103.

McCarthy, David and John Turner (1996), “Financial Sophistication, Saving and Risk Bearing,” mimeo, U.S. Department of Labor Miles, David (2004), “The UK Mortgage Market: Taking a Longer-Term View”. UK Treasury.

Powered by OpenAIRE Research Graph
Any information missing or wrong?Report an Issue